Grain Highlights 28.07.2022

Lloyd's is ready to insure the export of Ukrainian grain across the Black Sea. Before the war, the insurance premium was 0.25% of the value of the cargo, but now it is 5%.

- In the first half of 2022, the production of unrefined sunseed oil in Russia reached 3.2 million tons (+16.9% compared to the previous year). In June alone, production was 458,400 tons (+52%).

- In 2022, the total production of grain and oil crops in Ukraine will reach 65 million tons, which is 40% less than the previous year.

- In 2021/22, 18.7 million tons of wheat were exported from Ukraine (16.6 in 2020/21). Egypt had a share of 16% of the total export (2.9 million tons), Indonesia had a share of 14% (2.5) and Turkey had a share of 10% (1.9 million tons).

- In July, 1.3 million tons of grain were exported from the Danube ports of Ukraine.

- The current drought in Western Europe is the worst in the last 70 years. The situation is most serious in France.

- Over the period July 1-22, 6.2 million tons of soybeans were exported from Brazil. For the whole month, exports are expected to reach 7.4 million tons (8.6 a year earlier). In March, soybean exports were 12.3 million tons, in April they totaled 11.5 million tons, in May - 10.6 million tons and in June they reached 10.1 million tons.

- In the next season (December - November), Australia's grain production will be good according to FAS USDA estimate. 31 million tons of wheat (36.3 in 2021/22) and 11 million tons of barley (13.7) are projected to be harvested.

- Despite the suspension of wheat exports from India, domestic wheat prices hit a record high of 23,530 rupees/ton. Some analysts estimate the 2022 wheat production in India at 95 million tons compared to 109.59 million tons in 2021. The government will only buy 18.8 million tons of wheat, which is 57% less than the previous year.